New Economics Papers
on Microfinance
Issue of 2014‒08‒16
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention By Jonas Helth Lønborg; Ole Dahl Rasmussen

  1. By: Jonas Helth Lønborg (University of Southern Denmark); Ole Dahl Rasmussen (University of Southern Denmark & DanChurchAid)
    Abstract: Reaching the poorest is an important objective in many development interventions, and microfinance is no exception. We review performance indicators for effectiveness of targeting described in the literature and suggest a new metric in order to account for extent and severity of poverty as well as the income distribution among the poor. When applying this to a panel dataset from a community-managed microfinance intervention in Northern Malawi, we find regressive outreach: Participants are less poor than the general population in the area. In addition, we provide suggestions as to when and why the poor exit the project.
    Keywords: targeting, outreach, microfinance, Africa, Malawi, savings groups
    JEL: O16 O13
    Date: 2013–08

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